Mutual Funds | Insurance | Investment |

Water is the biggest enemy of a car's engine. With the onset of monsoons, a lot of you might be getting messages from your insurers regarding do's and don'ts in case your car gets stuck in the water. This is because every monsoon the insurers are flooded with claims of engine seizures due to water ingression. With this post today we will tell you more about the engine protection feature of an insurance policy and why it is important. In general, if your car engine is seized due to water ingression it isn't covered in insurance. This is because the specific case of water ingression isn't treated as an accident. To make matters worse you may try starting your car while it is in water causing more damage to the engine and further reducing your chances of getting a claim. Engine protection covers any damage to the engine arising out of accident or due to water ingression. The cover is an add-on cover and specifically covers damages to the engine. It does increase your i...

Investing through SIP route is one of the most popular ways of putting money in mutual funds. Inflows through SIPs contribute over 10 billion dollars to the mutual fund industry AUM every year. Investors wanting to follow a disciplined path to investing use SIP route wherein a fixed sum is invested in mutual funds every month. SIP investment is mostly concentrated in equity mutual funds. The reason for the same is that in equity the returns are volatile and hence putting a monthly amount leads to automatic cost averaging, thus, negating timing effect from the investment. Also, SIPs are generally meant to go on for years and equities are expected to outperform every other instrument in the long term so equity SIP makes sense. Covid pandemic has dented the returns on equity mutual funds. With 5-year SIP return turning negative a rude shock has been delivered to investors especially the ones who have entered the equity markets in the past 4-5 years. Amidst the fall in the performance of e...

Systematic Investment Plan or SIP has become a popular route of investing in mutual funds. Investors pour over 1 billion dollars (over Rs. 8,000 crores) in mutual funds every month through the SIP route! In SIP, a fixed amount is debited from your bank account on a fixed date every month. SIP is basically a convenient service for you where you don't need to do a manual transaction every month, thus automating the task of investing. Your only responsibility is to maintain the balance before the SIP date so that the money gets debited and you are allotted mutual fund units. However, there are times when you may be feeling a liquidity crunch and hence may not be able to arrange money for the upcoming SIP. Also, you may just forget to maintain sufficient balance in the account and not realize the same until you get the reversal message from the mutual fund company. Under such circumstances, the SIP will get reversed due to insufficient balance! A lot of investors don't have an idea...